In a Cobb Douglas production function the marginal product of labor will increase if:
a. the quantity of labor increases. |
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b. the quantity of capital increases. |
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c. capital's share of output increases. |
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d. average labor productivity decreases. |
In a Cobb Douglas production function the marginal product of labor will increase if: a. the...
Assume the following Cobb-Douglas production function: Assume the following Cobb-Douglas production function: Y = AK 0.4 20.6 If Y=12; K=8; and L=95, answer the following questions (SHOW ALL YOUR WORK): - 1. What is total factor productivity? 2. With your answer in (1), assume L=95 and estimate the production function with respect to K 3. Estimate the marginal product of capital and demonstrate diminishing marginal product of capital 4. Estimate real capital income 5. Estimate the share of capital income...
9. (chapter 6) If the Cobb-Douglas production function is 92- , what is the average product of labor ( 447 ), holding capital fixed (that is, just leaving K alone in the equation)? , what is the marginal |10. (chapter 6) If the Cobb-Douglas production function is 9=- product of labor ( MP4 )?
Sheet1 The Cobb-Douglas production function for a product is NIX.Y) - 10(x*O.B)(y^0.2) where is the number of units of labor and is the number of units of capital required to produce units of the product. What is the marginal productivity of labor and the marginal productivity of capital? What are they when there are 40 units of labor and 50 units of capital? NxIx.) Nx (40, 50) = Nyix,y) Ny 40, 50) If each unit of labor costs $100, each...
2. For the following Cobb-Douglas production function, q = f(L,K) = _0.45 0.7 a. Derive expressions for marginal product of labor and marginal product of capital, MP, and MPK. b. Derive the expression for marginal rate of technical substitution, MRTS. C. Does this production function display constant, increasing, or decreasing returns to scale? Why? d. By how much would output increase if the firm increased each input by 50%?
(Growth Accounting) Suppose that the representitive firm's production function is Cobb- Douglas: (a) Show that the growth rate of total output can be decomposited as (Hint: You may take logarithm to equation (4) on both sides, then use chain rule to take derivative with repect to time t) (b) Suppose in the year 2016, compared to 2015 the total output increases by 3%, and the technology keeps the same (no change in A). Also the labor force inceases by 0.05%...
A “Cobb–Douglas” production function relates production (Q) to factors of production, capital (K), labor (L), and raw materials (M), and an error term u using the equation: ? = ???1??2M?3? ?, where ?, ?1, ?2, and ?3 are production parameters. a) Suppose that you have data on production and the factors of production from a random sample of firms with the same Cobb–Douglas production function. How would you propose to use OLS regression analysis to estimate the above production parameters,...
Need help on some of my calculus homework The Cobb-Douglas production function for a product is N(x,y) = 10(x^0.8)(y^0.2) where x is the number of units of labor and y is the number of units of capital required to produce N units of the product. What is the marginal productivity of labor and the marginal productivity of capital? What are they when there are 40 units of labor and 50 units of capital? Nx(x,y) = Nx(40, 50) = Ny(x,y) =...
According to the neoclassical theory of distribution, in an economy described by a Cobb Douglas production function, workers should experience high rates of real wage growth when a. marginal labor productivity is growing rapidly b. the capital stock is growing slowly c. the labor force is growing rapidly. d. labor productivity is growing slowly
. rhis problem requires the use of calculus.) Consider a Cobb-Douglas production function with three nputs. K is capital (the number of machines). L is labor (the number of workers), and H is human capital (the number of college degrees among the workers).The production function is a. Derive an expression for the marginal product of labor. How does an increase in the amount of human capital affect the marginal product of labor? b. Derive an expression for the marginal product...
SHOW ALL WORK!!! 2. For the following Cobb-Douglas production function, q=f(L,K) = _0.45 0.7 a. Derive expressions for marginal product of labor and marginal product of capital, MP, and MPK. b. Derive the expression for marginal rate of technical substitution, MRTS. C. Does this production function display constant, increasing, or decreasing returns to scale? Why? d. By how much would output increase if the firm increased each input by 50%?